The Euro began the week trading against the British Pound in the region of 0.8604
Today the Euro is trading against the British Pound in the region of 0.8613
Here we take a brief look at what's been happening with the Euro this week, and what could cause the Euro exchange rate to rise or fall in the week ahead.
Round-up for week ending 26/07/13
Exactly a year ago today, the Euro was trading against the Pound in the region of 78 pence per Euro.
In the months leading up to July the common currency had broadly weakened in response to concerns relating to a Greek exit from the Eurozone, disappointing economic data and falling investor sentiment.
Then Mario Draghi, President of the European Central Bank, delivered the speech the currency bloc had been waiting for.
He asserted: ‘Within our mandate, the ECB is ready to do whatever it takes to preserve the Euro. And believe me, it will be enough’.
Those few simple words, combined with the development of the Overnight Monetary Transactions scheme, were enough to bring markets a measure of stability and bolster the Euro.
While the Eurozone has still faced a variety of challenges this year, from the threat of slowing German growth to political issues in Portugal and Italy, economic sentiment both within and outside of the Eurozone has improved, and data has started to take on a rosier outlook.
Although the Euro softened against the Pound yesterday as the UK economy was shown to have expanded by 0.6 per cent in the second quarter of the year (double the rate of expansion seen in the first quarter) positive economic sentiment data from France supported the common currency this morning.
The Euro continues to trade above 86 pence per Euro and has strengthened to 1.32 against a softening US Dollar.
With a large amount of economic news scheduled for release next week, the Euro is likely to experience significant movement.
What to look out for next week:
In the week ahead the most influential pieces of economic news from the Eurozone include Tuesday’s German consumer confidence survey, Eurozone consumer confidence index and German CPI, Wednesday’s German and Eurozone employment data plus Eurozone CPI, Thursday’s German and Eurozone manufacturing PMI and European Central Bank rate decision and Friday’s Eurozone producer price index.
The US Federal Reserve’s policy meeting is also likely to inspire market volatility.
Also, if next week’s second quarter GDP figures for the UK top expectations the Euro could decline against the Pound.
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Current Euro Exchange rates:
The Euro is trading against the Pound in the region of 0.8613
The Euro is trading against the US Dollar in the region of 1.3262
The Euro is trading against the Australian Dollar in the region of 1.4341
The Pound is trading against the Euro in the region of 1.1610
The US Dollar is trading against the Euro in the region of 0.7541
The Australian Dollar is trading against the Euro in the region of 0.6973
These exchange rates are provided by TorFX, a leading provider of foreign exchange. TorFX offers the best possible exchange rates for all your currency needs.
These exchange rates were correct as of 14.30 GMT on the 26/07/13